The world around the human being is getting smaller and smaller. Producers are looking in ever more open economies for locations to efficiently serve the world's markets, creating complex transport flows, embedded in intertwined chains of many different firms taking roles like suppliers, producers, retailers, service providers, etc. Firms compete not only on an individual basis but as parts of chains and networks. It is in the interest of public government to focus their policies on chains and networks instead of individual firms. This paper attempts to capture real-world signals for this shift of management and policy paradigm by discussing the following issues: (1) How are logistical chains formed and how do they change; (2) What are the consequences of cross-border behaviour of chains; (3) What are the effects of trade agreements upon the economic performance of chains; (4) How is the relationship between chaining regions and chains; (5) What external, political and societal influences shape chains; (6) How are market demand and supply in this context expressed; (7) Do chains cause the 'hub follows flow' syndrome; and (8) what barriers exist in global chains and how can these be influenced by public policy? (A)
Abstract